It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology.[1][4] Rather than pay an equal amount for energy, however generated, technologies such as wind power, for instance, are awarded a lower per-kWh price, while technologies such as solar PV and tidal power are offered a higher price, reflecting costs that are higher at the moment. In addition, feed-in tariffs often include "tariff degression", a mechanism according to which the price (or tariff) ratchets down over time. Description[edit]
Renewable Energy Database.